1603 S Oak St

Brady, TX 76825

$94,900C

2 bd · 1.0 ba · 1,056 sqft · Built 2018 · Manufactured · Active · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $950/mo
• Mortgage (P&I): −$498
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$200
• Net cashflow: $104/mo
• Annual: $1,253/yr
• Cap rate: 7.61%
• Cash-on-cash: 4.72%
• DSCR: 1.21
• 1% rule: 1.00%
• Cash to close: $26,572

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $95k.
• At list price, monthly cash flow is $104 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($950 rent vs $95k).
• It's been on market 116 days — a 9% lower offer ($86k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (9.0% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($656 loan paydown + $6k appreciation (6.5% local appreciation)).
• Location reads 72/100 on livability (#270 in TX) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Brady ISD (rural): math 50% / reading 46% proficiency, ranked #238 of 826 in TX (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brady El (math 33% / reading 34%, grade F, #2,174 of 4,322 statewide, top 51%, 476 students, 74% FRL); Brady Middle (math 61% / reading 50%, grade B-, #240 of 1,662 statewide, top 15%, 180 students, 58% FRL); Brady H S (math 62% / reading 67%, grade B-, #199 of 1,632 statewide, top 14%, 300 students, 58% FRL).
• Market conditions: 105 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2 units permitted in McCulloch County in 2024 (0 in 5+ unit buildings).
• At projected returns (6.5% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 7.6% vs local median 3.3% in Brady — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 116 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.